China offering lower rates

China's major commercial banks are beginning to offer mortgage rates for eligible borrowers at 70 per cent of the benchmark rate from 80 per cent, in accordance with a central bank ruling late last year, the official Xinhua news agency reported...

The report said the new rates are also being offered to borrowers who took on preferential mortgages before October 27th, 2008, and have not fully paid back their loans. October 27th was the date the central bank announced the lower limit for preferential mortgage rates.

It said China Construction Bank is offering the lower rates for its Beijing, Shanghai and Qingdao clients, pending credit checks.

The Bank of China branch in Shanghai is also offering the new rates. However, its Beijing branch is retaining the old rates.

The Industrial and Commercial Bank of China and the Agricultural Bank of China are also preparing to lower their rates, the report said.

Source: Interactive Investor